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Chelsea: Household bills eat into savings

11/07/2008

Some British consumers are struggling with bills to the extent they are cashing in their savings, a new survey has indicated.

Chelsea Building Society`s poll said the costs of utility bills and council tax have caused 15 per cent of people to dip into their savings accounts.

The rising price of food has led to 14 per cent using their savings for grocery shopping while 12 per cent have spent their savings on rent or mortgage repayments.

Chelsea`s figures may create worries about future debt problems.

The building society`s director of customer services Darren Stevens described the situation as "a completely new phenomenon".

"We are concerned that many people`s finances are in real trouble due to the growing pressure of rising costs across so many essential items," he said.

Mr Stevens went on to recommend cutting back on spending on luxuries, "sensible budgeting" and saving money for the future.

In related news, this week the Post Office revealed over half of British consumers over the age of 50 are putting everyday expenditure on credit cards.

Bachelors `forced to spend more` 17/11/2008 - People who live by themselves find it more difficult to Bankruptcy `increases by 7%` 17/11/2008 - The number of consumers in England and Wales facing bankruptcy Finances `causing women sleepless nights` 14/11/2008 - Financial concerns, potentially including debt problems, are causing women sleepless Christmas spending slowdown expected 13/11/2008 - Christmas spending is expected to stagnate this year, as consumers